ROCK HILL, South Carolina - February 26, 2020 - 3D Systems Corporation (NYSE:DDD) announced today its financial results for the fourth quarter and full year ended December 31, 2019.
For the fourth quarter of 2019, the company reported GAAP revenue of $164.6 million, compared to $180.7 million in the same period last year. Printer revenue decreased by 22.8 percent due to the delay in factory metals printing shipments, timing of large enterprise customer orders and the softer macro industrial environment. Materials revenue increased 7.3 percent, healthcare solutions revenue decreased 5.9 percent including a large enterprise customer and decreased 2.3 percent excluding this same customer, on demand services revenue decreased 17.2 percent and software revenue decreased 10.2 percent. The company reported fourth quarter 2019 GAAP loss of $0.04 per share compared to a GAAP loss of $0.04 per share in the same period last year, and non-GAAP earnings of $0.05 per share compared to non-GAAP earnings of $0.10 per share in the same period last year.
For the full year 2019, the company reported GAAP revenue of $629.1 million compared to $687.7 million for the prior year. Printer revenue decreased 24.3 percent, again due to the delay in factory metals printing shipments, timing of large enterprise customer orders and the softer macro industrial environment. Materials revenue decreased 0.6 percent, healthcare solutions revenue decreased 3.5 percent including a large enterprise customer and increased 9.8 percent excluding this same customer, on demand services revenue decreased 13.5 percent and software revenue decreased 2.7 percent. The company reported full year 2019 GAAP loss of $0.61 per share compared to a GAAP loss of $0.41 per share in the prior year, and non-GAAP loss of $0.08 per share compared to non-GAAP earnings of $0.15 per share in the prior year.
"In 2019 we demonstrated how our digital manufacturing strategy has come alive, with customers realizing the benefits of our production solutions across a range of industries and creating over 200 million production parts using 3D Systems’ solutions. Despite macroeconomic headwinds, I’m pleased with the growth in materials in the second half and our continued focus on cost structure," commented Vyomesh Joshi ("VJ"), president and chief executive officer, 3D Systems. "Now in 2020 we believe we have the right products and solutions, including our planned shipment of factory metals printers in the second quarter, to accelerate the adoption of additive manufacturing technology and drive profitable revenue growth."
For the fourth quarter 2019, the company reported GAAP gross profit margin of 43.6 percent compared to 45.7 percent in the same period last year. Non-GAAP gross profit margin was 43.8 percent in the fourth quarter compared to 46.3 percent in the same period last year.
For the full year, the company reported GAAP gross profit margin of 44.2 percent compared to 47.2 percent in the prior year. Non-GAAP gross profit margin was 45.0 percent for the full year compared to 47.4 percent in the prior year.
For the fourth quarter of 2019, GAAP operating expenses decreased 14.6 percent to $76.5 million compared to $89.6 million in the same period last year. GAAP SG&A expenses decreased 10.3 percent to $59.3 million. GAAP R&D expenses decreased 27.2 percent to $17.1 million. Non-GAAP operating expenses in the fourth quarter decreased 12.3 percent to $66.4 million compared to $75.7 million in the same period last year, as a result of execution of the company's cost reduction plans.
For the full year 2019, GAAP operating expenses decreased 8.8 percent to $335.1 million compared to $367.6 million in the prior year. GAAP SG&A expenses decreased 6.6 percent to $254.4 million. GAAP R&D expenses decreased 15.2 percent to $80.8 million. Non-GAAP operating expenses for the full year decreased 9.0 percent to $280.3 million compared to $307.9 million in the prior year, as a result of execution of the company's cost reduction plans.
The company generated $21.5 million of cash from operations during the fourth quarter. Cash generation was driven by improvements in working capital, including planned reductions of inventory.
The company had $133.7 million of unrestricted cash on hand at December 31, 2019.
Q4 and FY 2019 Conference Call and Webcast
The company expects to file its Annual Report on Form 10-K for the year ended December 31, 2019 with the Securities and Exchange Commission on February 26, 2020. 3D Systems plans to hold a conference call and simultaneous webcast to discuss these results today, Wednesday, February 26, 2020, which may be accessed as follows:
- Date: Wednesday, February 26, 2020
- Time: 4:30 p.m. Eastern Time
- Listen via webcast: www.3dsystems.com/investor
- Participate via telephone: 201-689-8345
A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.
Presentation of Information in this Press Release
To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, the company reported non-GAAP measures excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, stock-based compensation expense, litigation settlements and charges related to strategic decisions and portfolio realignment. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.
About 3D Systems
3D Systems provides comprehensive 3D products and services, including 3D printers, print materials, on-demand manufacturing services and digital design tools. Its ecosystem supports advanced applications from the product design shop to the factory floor to the operating room. 3D Systems’ precision healthcare capabilities include simulation, Virtual Surgical Planning, and printing of medical and dental devices as well as patient-specific surgical instruments. As the originator of 3D printing and a shaper of future 3D solutions, 3D Systems has spent its 30 year history enabling professionals and companies to optimize their designs, transform their workflows, bring innovative products to market and drive new business models.
More information on the company is available at www.3dsystems.com